Retail values for 3–4-year-old cars have seen only a modest decline despite increasing supply, as the UK’s used car market remains resilient, according to the latest data from Percayso Vehicle Intelligence (PVI).
The analysis shows that retail values for popular 3–4-year-old models with fewer than 75,000 miles dropped by just 1.5% year to date, which PVI attributes to sustained supply constraints stemming from the COVID-19 pandemic. Stock levels in this age bracket have been rising since March, but values remain underpinned by limited availability.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
“There are approximately three million fewer used cars in circulation than we would typically expect,” said Derren Martin, senior market analyst at PVI. “This fundamental supply constraint continues to support values.”
Retail valuations rose in January and February, with February recording the strongest gains. Values dipped slightly in March and fell by a further 1.6% in April, contributing to the overall YTD decline. Martin described this as a “minor adjustment” that reflects a “very robust market”.
Late-plate vehicles (2024–2025 registrations) have also shown firm performance, with values up 2% YTD. Martin said this segment has faced less downward pressure from pre-registered stock and benefited from the easing of Zero Emission Vehicle (ZEV) mandate targets. “Values are holding up well, with only a negligible softening observed in April,” he noted.
Hybrid vehicles continue to outperform the broader market. Retail and trade values for hybrids – including plug-in models – have increased by nearly 4% YTD, supported by steady volumes and strong consumer interest early in the year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Hybrids are proving to be the sweet spot for many consumers,” Martin said, noting that they appeal to drivers not yet ready to switch fully to battery electric vehicles (BEVs).
Electric vehicles remain the most volatile segment. While advertised volumes are rising, values have fluctuated. Martin said valuation trends in the EV sector are difficult to summarise, with some models offering value compared to internal combustion engine counterparts, while others still appear overpriced. “Consumer demand for used EVs is not yet keeping pace with the growing supply,” he said.
PVI’s analysis concludes that while overall values have softened slightly, the used car market continues to be shaped by post-pandemic supply issues and divergent trends across powertrains. “The differing fortunes of EVs and hybrids, set against a backdrop of constrained supply for younger used cars, will continue to shape the market in the coming months,” Martin said.
